NEW DELHI, India — Gold and silver prices declined Wednesday as investors booked profits following recent gains, although a weaker U.S. dollar and ongoing geopolitical uncertainty limited the extent of the drop.
On the Multi Commodity Exchange (MCX), gold April futures slipped 0.52 percent to Rs 1,62,452 per 10 grams around 11:15 a.m. during intraday trading. Silver May futures fell 1.69 percent to Rs 2,73,150 per kilogram.
The pullback followed a strong rally in the previous session, when gold April futures rose nearly 2 percent and silver May futures surged about 4 percent.
The U.S. dollar weakened slightly, declining 0.07 percent during intraday trading to 98.75, which made dollar-priced bullion cheaper for holders of other currencies and helped cushion the fall in precious metal prices.
Crude oil prices also declined, easing inflation concerns that had previously supported demand for gold as a hedge against rising prices.
Brent crude slipped 0.99 percent to $86.93 per barrel, while U.S. West Texas Intermediate futures fell 0.75 percent to $82.82 per barrel.
Both benchmarks had settled more than 11 percent lower overnight, marking their steepest single-day decline in four years after the International Energy Agency proposed the largest release of emergency oil reserves in its history.
Market participants said profit-taking in precious metals was driven partly by uncertainty surrounding the trajectory of the ongoing conflict involving Iran, following mixed signals from U.S. President Donald Trump. The president had earlier suggested the war might be nearing an end, but the United States and Israel later carried out intense airstrikes on Iran overnight.
Investors are also closely watching upcoming U.S. economic data, particularly the Personal Consumption Expenditures index due Friday, which is expected to provide clues about inflation trends and the Federal Reserve’s potential path on interest rates.
Despite short-term volatility, analysts said the medium- to long-term outlook for silver remains positive.
“MCX Gold has support at Rs 1,61,800 to Rs 1,60,350 zone while resistance at Rs 1,64,400 and Rs 1,66,600 levels. MCX silver has support at Rs 2,744,000 and Rs 2,68,000, and resistance is at Rs 2,81,000 and Rs 2,85,500,” an analyst said. (Source: IANS)
